- Online brokerage firm could fetch as much as $300 million
- Company competes with E*Trade, Scottrade and TD Ameritrade
Online discount brokerage company TradeKing Group Inc. is working with Bank of America Corp. to find a buyer, according to people with knowledge of the matter.
TradeKing could fetch as much as $300 million in a sale, said the people, who requested not to be named because the discussions are private.
Don Montanaro, chief executive officer for the Fort Lauderdale, Florida-based company, declined to comment on the plans. A spokesman for Bank of America declined to comment.
Founded in 2005, TradeKing competes with companies such as E*Trade Financial Corp., Scottrade Inc. and TD Ameritrade Holding Corp. TradeKing charges investors a flat rate of $4.95 per stock trade with no minimum account balance.
TradeKing has made several acquisitions in recent years to expand beyond facilitating stock trades. The company acquired MB Trading last year to add futures trading after buying assets from GAIN Capital Securities in 2013 and online broker-dealer Zecco Holdings in 2012.
Montanaro said in an interview today that TradeKing is well-positioned for growth because half of its customers are 35 or younger and have not yet hit their financial peak. He said the company has raised financing from investors including Battery Ventures, Velocity Capital BV and OCA Ventures. He declined to share the company’s revenue figures or how much it’s raised from investors.